Martin explains his concept of a virtual world currency. As gg suspected, the world currency would be for global trade only, and the national currency would still be around. Take special note of the 2nd full paragraph on page 4.

Groovygirl’s comments: hyperinflation and cost-push inflation will look exactly the same to American Main Street, especially when 65% are unemployed or on a fixed income.

Regarding Martin’s real estate prediction that housing will get “better” between 2012-2015 (then fall off a cliff into 2032). Today, we heard that the number of houses sold has improved in 2012, but 25% of those houses sold were short sales. So, does housing “get better” in the next three years because the average price goes up or because more houses are sold, but at a lower value? gg thinks the latter. Which one could mean the difference between solvency and bankruptcy to the seller.

Keep in mind that Reggie is right most of the time, but usually early. It is very possible to keep the European banking system together until after the US elections. It is also possible to keep confidence until mid 2013. It is also possible for it to all unravel tomorrow. This is a confidence game and nothing else.

GG is also interested in what the new rules from the ISDA will be regarding “credit events”. That could prop-up or erode trust between banks and countries very quickly.

One of the few men in this country that has the experience and knowledge to educate Congress on the derivative or instrument of mass financial destruction and the major consequences of national banking crises, and they do not want him to speak. But Corzine and Dimon are called to spew b*ll-sh*t in the hallow halls of this Republic every time their actions cause a crisis?

And there you go, further evidence that those in power do not want to hear the truth, let alone fix the problem. Do not expect a solution from government.

You are on your own. Make sure you are protecting your financial investments from the stupidity of our elected officials and their lackeys.

It is not that important that a great leader be exceedingly wise in every subject and detail, but that he/she know enough to be able to discern truth from fiction and expert from novice and honesty from lies. With true discernment, a leader will gather the best and brightest of the age around him/her (and, of course, listen to their advice) and thus retain leadership through trust, not force or propaganda.

totallygroovygirlfriday

Side musing: As I have stated before, it is groovygirl’s (completely unprofessional) opinion that the shadow banking system, and its “currency”, the derivative, is being used as the plug for the global debt implosion. It is gg’s opinion as well, that the “hyperinflation in a currency” that we are looking for is occurring in the shadow banking system and will implode there (effecting the real markets outward). (MF Global is just a small taste). Derivatives will not be curbed or dismantled. They will continue just as the are, because they are the current “currency” weapon against the global debt implosion: an exponential function or “hockey stick”.

Derivatives make the non-interest loans from the Fed and currency swaps multiplied upon themselves. And that is the massive amounts of credit needed to defuse the next global debt crisis. Straight money printing is not enough anymore. But at some point, even derivatives will not work anymore. That is the nature of the exponential function in real terms. It must collapse upon itself at some point.